The UK is rapidly moving toward a cashless future, and travelers need to be ready for life without piles of coins and notes.  In 2023, only about 12% of all UK payments were made with cash (down from over 50% in 2013) .  Debit cards now account for roughly half of all payments , and almost 4 in 10 transactions are contactless (including mobile payments) .  Even more strikingly, Barclays reports that 94.6% of eligible in-store transactions in 2024 were contactless (up from 93.4% in 2023) .  In short, British consumers are tapping and swiping constantly – and travelers should expect the same.

  • Cash is declining: UK Finance data show cash fell to just 6 billion payments in 2023 (about 12% of the total) .  Similarly, the British Retail Consortium (BRC) found cash at about 20% of retail transactions in 2023 .  (Cash briefly ticked up during the cost-of-living squeeze, but it remains far below a decade ago.)
  • Card usage dominates: Debit cards make up over 50% of payments  and combined debit+credit cards are used in over 75% of retail transactions .  Online transfers (Faster Payments) also surged past cheques and direct debits in 2023 .
  • Mobile and contactless boom: About 34% of UK adults use a mobile wallet at least monthly , and 42% of adults have registered for mobile Pay (e.g. Apple Pay or Google Pay) .  Use of contactless (tap-and-go) grew 7% in 2023 alone, to 18.3 billion transactions .  Younger and even older shoppers love it: over-65s were the fastest-growing contactless users in 2024 .

 

Taken together, these trends mean that the British pound is increasingly digital.  Cash still exists – “cash is still the second most frequently used payment method in the UK” – but more and more people live largely cashless.  UK Finance estimated 39% of adults now use almost no cash , while only about 2–3% of people mainly use cash .  In practical terms for travelers, you’ll find that cards and mobile payments work almost everywhere, but you may encounter far fewer places that take cash.

 

Contactless and Mobile Payments: Ubiquitous On the Go

 

Contactless and mobile pay technology have spread like wildfire.  If your bank card or smartphone is enabled for contactless, it will work in vast numbers of shops, pubs, and machines.  UK Finance reports 38% of UK payments were contactless in 2023 – and Barclays finds that percentage is now nearly 95% of eligible in-store payments .  In other words, tapping to pay is the norm.  This applies across sectors:

  • Retail & dining: Supermarkets, shops, cafes and restaurants readily accept contactless taps.  Many chains (Gail’s, Itsu, Zizzi, Pret) now even test cashless-only outlets .  Large shops typically have no minimum for card payments. Smaller vendors often prefer card or phone payments to avoid counting cash.
  • Transport: Major transit systems are geared for cashless. In London, all buses and trams are entirely cashless – you must pay with an Oyster card, Travelcard or contactless card/device  .  The Underground and DLR use the same system.  Outside London, many trains and coaches now accept contactless pay-as-you-go: in fact, the National Rail network lets you touch in/out with any contactless card or device at participating stations  . Even taxis and ride-hail apps are overwhelmingly card-based.
  • Accommodation: Hotels, B&Bs and Airbnbs universally accept credit/debit cards for booking and payment.  (Some smaller guesthouses may request a cash deposit or tip, but guests can handle most charges digitally.)

 

This shift is evidenced by data: UK Finance found one-third of UK adults use mobile contactless at least once a month .  Younger generations especially rely on Apple Pay/Google Pay: e.g. 42% of Gen Z now prefer mobile pay for purchases over £100 .  For travelers, that means bringing a contactless-enabled card or device is key.  As Barclays notes, older shoppers are adopting contactless fastest, but nearly everyone finds it easier .  The infrastructure is there: most payment terminals accept cards up to the current £100 limit (recently raised from £45), and apps like Apple/Google Pay work anywhere contactless is offered .

 

Preparing for a Cashless UK: Traveler Tips

 

Given how common card and mobile pay are, travelers should plan accordingly.  Here are some practical tips:

  • Use chip-and-contactless cards. Make sure your debit/credit cards have a contactless symbol and chip/PIN. If not, ask your bank for replacements. When you pay, you’ll usually tap or dip and enter a PIN for amounts above the contactless limit.  Tip: Always know your PIN – UK merchants expect a PIN rather than a signature.
  • Enable mobile wallets. Load your card(s) into Apple Pay, Google Pay or Samsung Pay if possible. Mobile wallet usage is rising (now 34% of adults monthly ) and works exactly like a contactless card (often with extra security like fingerprint).  This can be convenient if you lose a card or want one less item to fumble.
  • Carry a travel money card or travel-friendly account. Consider getting a prepaid travel card or international debit card that locks in exchange rates and avoids high fees. For example, the Post Office Travel Money Card is a prepaid Pound Mastercard that supports contactless and Apple/Google Pay .  Similarly, fintech bank accounts like Revolut, Wise or Monzo (if available to you) offer fee-free or low-fee spending abroad. These let you tap out of a smartphone app and often give good exchange rates.
  • Avoid ATM/FX fees. If you do need cash, use an ATM carefully. Choose machines at banks (look for your card’s network logo) to minimize charges. Check if your bank refunds overseas ATM fees. Always decline “dynamic currency conversion” – pay in GBP rather than your home currency to avoid hidden markups. In general, plan to use card or mobile pay first, and rely on cash only for occasional needs.
  • Notify your bank. Let your card issuers know you’ll be in the UK to avoid fraud blocks. Confirm any foreign transaction fees. Ask about daily withdrawal limits (in case you do use ATMs) or if your card needs a magnetic stripe (rare in UK now).
  • Bring a backup. Carry at least two payment methods (e.g. one credit and one debit card) in case one fails. Pack them separately to avoid both getting damaged or demagnetized.

 

By following these steps, travelers can “go mostly cashless” and avoid last-minute scrambles.  In fact, some guidebooks now advise that you don’t really need cash in London at all – but it’s still wise to keep a small reserve for remote areas or emergency use.

 

Who Depends on Cash? Digital Exclusion and Risks

 

Not everyone is happily tapping away.  A significant minority of people in the UK still rely on cash for budgeting or because they’re uncomfortable with digital banking.  Consumer groups and even MPs have pushed back on cashless-only policies, calling it a “fundamental right” to pay by note or coin .  The recent UK Finance survey found 1.5 million adults mainly use cash for everyday expenses in 2023 (a jump from 900,000 the year before) .  These users tend to include seniors, low-income families, or people without smartphones or bank accounts .

 

For travelers, this matters in two ways. First, cashing out local currency may be harder in some rural or deprived areas where cash demand has dwindled. ATMs are closing and local shops may be card-only .  Second, be aware of digital exclusion risk: if something goes wrong with card systems, travelers with no cash backup could be stranded.  (Indeed, after a recent nationwide IT outage in the UK, the ATM network warned it’s “critical” to have some cash if digital systems fail .)  In practice, we suggest keeping a modest amount of emergency cash (tens of pounds) tucked away, just in case.  It’s not for daily spending – it’s your safety net.

Benefits and Risks of Cashless Travel

 

Going cashless brings clear perks, but also some caveats.

  • Benefits: Payments are fast, convenient and trackable. You can pay from your phone in a rush, split bills easily in apps, and avoid carrying bulky wallets. Contactless taps are hygienic and paperless receipts (or email receipts) leave less room for error. In the UK, it also means smoother travel (no fumbling for change on buses or trains). And if your card or phone is stolen, you can quickly lock or cancel it, unlike losing cash which is gone forever.  Many travelers appreciate how they can see every charge on a banking app as they spend.
  • Risks: Any digital system faces security and privacy concerns. Credit/debit fraud still occurs – although UK Finance reports that contactless fraud is actually a small fraction of total card fraud (contactless accounted for £41.5m of £708.7m in 2023).  Nevertheless, keep your phone locked and be wary of shoulder-surfing PIN theft. Using credit instead of debit can add a layer of fraud protection in some cases. Also note that public Wi-Fi networks can be insecure; avoid banking or payment apps on open networks.

Another risk is over-reliance on technology. Phones can die, cards can malfunction, and internet outages can disrupt QR or app-based payments. As a traveler, always have alternatives (e.g. charged power bank for your phone, or multiple cards). Be careful at unattended kiosks – some older machines might misread cards (keep cards separate to avoid “card clash” on bus readers ).

  • Digital exclusion: As noted, full digitization can marginalize the cash-dependent. In service contexts (like tipping porters or small street vendors) cash is often still appreciated.  Many people in the UK feel strongly that cash should remain an option, not banned outright  .  Travelers may encounter businesses or charities that won’t accept cards – for example, station buffets or local markets that have gone card-only . Carrying some coins or small bills (e.g. to tip or pay a minibus driver) can make your trip smoother.

 

In short, the benefits of cashless (speed, ease, global acceptance) generally outweigh the downsides, but stay alert.  Keep a mixed strategy: use digital pay for most buys, but carry a safety buffer of cash and have contingency plans.

 

What Tourists Should Expect: Payments in Practice

 

By now, it’s safe to assume that most UK shops and services prefer card or mobile payment.  Here’s what a traveler will typically find:

  • Public Transport: In London, boarding any Tube, DLR, tram or bus requires card/device. London buses explicitly do not accept cash at all – you must use Oyster/contactless  .  Each bus trip costs £1.75 no matter the distance , and simply tapping out is how you pay.  For outer London or long-distance trains, look for Oyster/contactless logos at stations; nearly all accept contactless now . (If you prefer, get a Visitor Oyster card or Travelcard in advance.) Outside London, many city buses also allow contactless taps, though some rural buses may still take cash – check local transit websites or ask the driver.
  • Retail and Dining: Virtually all supermarkets, chain stores, restaurants and pubs accept cards and mobile pay.  You can leave big wallets behind and just tap in the café or at the checkout.  Some small shops or pubs, however, might have a minimum charge for card (e.g. “card only for under £5”) or might prefer cash to avoid card fees  . Many urban kiosks (newsagents, kiosks) do take cards nowadays, but it’s always polite to ask if cash is not handy.  Tip: Make sure to pay in pounds (GBP) at overseas card terminals – decline “convert to USD/EUR” options to avoid extra markups.
  • Dining and Tipping: When eating out, you’ll usually get a machine at the table or register.  The UK generally includes service charges automatically; if you want to tip, card terminals usually allow adding 10–15% at the end of the transaction.  If a restaurant or pub only accepts card, that’s increasingly common.  If they happen to be cash-only (rare nowadays except very old-fashioned spots), smaller bills or coins would be needed for your bill or tips.
  • Accommodations: Hotels and guesthouses all take cards for payment and deposits.  You might see a sign “we accept Visa/Mastercard” – American Express is less widely accepted, so best stick to Visa/Mastercard.  If paying in cash, some small B&Bs may allow it, but it’s simpler to pay by card (and that earns you points, too).  Always check if there’s a credit card fee (some places charge ~2% for card use).
  • Online and Apps: Don’t forget that many purchases in the UK are digital.  You can buy train tickets, theatre tickets or even groceries online or via apps using a card.  Uber/Lyft-style taxi apps and most delivery services (Just Eat, Deliveroo) are entirely cash-free.  It’s convenient but means you’ll need a working card or app account.

 

Overall, carry card/mobile pay as your primary method.  Pack a few tens of pounds in case you land in a location with no signal or need exact change (e.g. at an older train station or parking meter).  But expect to rely on digital payments for most of your UK adventures.

 

Disclaimer 

The information provided in this blog is for general informational purposes only and should not be construed as professional financial, legal, or investment advice. While we strive to ensure the accuracy and reliability of the information presented, UK Exchange make no guarantees regarding the completeness, accuracy, or suitability of the content. Readers are encouraged to consult with qualified professionals for advice tailored to their individual circumstances. 

 

 Sources